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US Inflation Rises in June as Trump-Era Tariffs Begin to Bite
Consumer prices in the United States rose sharply in June, reflecting the gradual impact of tariffs imposed under former President Donald Trump's trade policy, as investors brace for further inflationary pressures in the second half of the year.
CPI Beats Forecasts Amid Rising Gasoline Prices
According to the latest data from the U.S. Bureau of Labor Statistics, the Consumer Price Index (CPI) rose by 2.7% year-over-year in June, up from 2.4% in May. This exceeded economists’ expectations of a 2.6% increase and was partly driven by a rebound in gasoline prices, which had been declining earlier in the year.
On a monthly basis, inflation climbed 0.3%, compared to a 0.1% rise in May—matching analysts’ projections.
Meanwhile, core CPI—which excludes volatile food and energy components—rose by 2.9% annually and 0.2% monthly, up from 2.8% and 0.1% respectively in the prior month. These figures point to persistent underlying price pressures in the economy.
Trade Tensions Fuel Inflation Concerns
The release comes amid escalating trade tensions between the United States and its global partners. Reports indicate that Trump recently sent letters to over 20 countries outlining new tariff proposals ranging from 20% to 50%. These include 35% duties on Canadian goods and 30% on imports from Mexico and the European Union, along with a broader plan to impose 15–20% tariffs on most other trading partners.
These protectionist moves have intensified fears of accelerating inflation, as higher import costs are expected to be passed on to U.S. consumers. In response, the EU is pushing for negotiations while preparing countermeasures in case talks fail.
Market Reaction: Equities Climb, Gold Dips Slightly
Financial markets responded with cautious optimism. Futures on the S&P 500 index rose 0.3%, while Nasdaq 100 futures advanced 0.6%. Dow Jones futures remained relatively steady.
In commodities, gold futures edged down 0.1% to $3,356 per ounce, while spot gold prices gained 0.12%, trading near $3,347 per ounce.
At the same time, the U.S. dollar index ticked higher by 0.05%, reflecting modest strength amid rising inflation and trade uncertainty.
